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Specialty retailer Pacific Sunwear (PSUN- 31-13/16) may get its day in the sun yet. The company was upgraded this morning from a "hold" rating to a "buy" rating. The analyst cited strong fundamentals and an attractive entry point as the reasons for the upgrade.
PSUN found support yesterday in the round-number 30 level as it slipped below its 20-day moving average. The stock has managed to rally on the positive news this morning and broken back above the 20-day moving average. Only the 10-day moving average lies ahead, a trendline that had beaten down the shares for the past two trading sessions.
According to Schaeffer's put/call open interest ratio, options players are still extremely bearish with the number of open put contracts outnumbering open call contracts. The stock has little other resistance ahead as open interest remains light at the 30 level and beyond.